Coinbase Fights Back Against SEC with Legal Petition Filing

Coinbase has filed a mandamus petition in response to the Securities and Exchange Commission’s (SEC) alleged inaction on digital asset regulation. A mandamus is a court order that ensures compliance by a government body with specific requests. Coinbase has raised concerns regarding the SEC’s failure to provide clear guidance on digital asset regulation and its response to the court, which allegedly fell short of delivering a satisfactory answer. Coinbase argues that the lack of response hinders its ability to exercise its rights under the Administrative Procedure Act effectively. The company maintains that the court should hold oversight of the SEC and encourage the commission to make progress in its rulemaking process. If the court proceeds with a writ of mandamus, the SEC must respond within seven days.

Chief Legal Officer Paul Agrawal expressed his view on Twitter, asserting that utilizing a writ of mandamus is the suitable legal recourse for addressing the unique circumstances presented in this case. In the United States, the APA is a federal law regulating federal agencies’ rulemaking and administrative procedures. Coinbase began a lawsuit against the SEC in April, seeking regulatory clarity, following the agency’s issuance of a Wells Notice to the exchange. The court compelled the SEC to respond to Coinbase. In its response, the commission stated that no statutory or regulatory commitment requires them to take specific actions within a selected timeline.

It is still possible for Coinbase to be required, using a mandamus, to address the issue of digital asset regulation following US laws, even if their petition is denied by the SEC. Coinbase maintains that the court should hold oversight of the SEC and encourage the commission to make progress in its rulemaking process. The company argues that the lack of response prevents them from challenging the commission’s decision or lack thereof considering rulemaking, both in practical and potentially legal terms.

In conclusion, Coinbase has filed a mandamus petition in response to the SEC’s alleged inaction on digital asset regulation. The company argues that the lack of response hinders its ability to exercise its rights under the Administrative Procedure Act effectively. Coinbase maintains that the court should hold oversight of the SEC and encourage the commission to make progress in its rulemaking process. If the court proceeds with a writ of mandamus, the SEC must respond within seven days.

J-S Tremblay
About the author - J-S Tremblay

I've been involved in the cryptocurrency world since 2016 and trading since 2019. I started Moon and Lambo in 2021. I'm passionate about crypto and love to share my knowledge. I hate bankers and I hope that cryptocurrency will change the financial world for the better. View full profile...

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